The CAA’s Atol consultation has suggested greater use of trust accounts could be a way forward, and just last week, Abta said it would recognise trust accounts as a form of protection for their members.
So what are the strengths and weaknesses of trust accounts? A clear strength of a properly run trust account is that consumers’ money can only be used to pay for the holiday they have booked.
All money taken from the consumer is paid into the trust account and no money is received by the travel firm until all suppliers for that specific booking have been paid.
